Insurtech Platform Ouch! has introduced a totally subscribed six-figure pre-Sequence A spherical, and is able to proceed this momentum by exercising its overallotment to get extra traders to hitch.
Oh! is a complete platform and app for educating customers about their protection/dangers, buying and managing digital insurance coverage merchandise, and submitting claims.
Providing well being, auto, residence, journey and life insurance coverage insurance policies, its companions embody AXA Affin Life Insurance coverage, Berjaya Sompo Insurance coverage Berhad and Etiqa.
After this funding, Ouch! it’s now looking for remaining approval from Financial institution Negara Malaysia (BNM) to function in its regulatory sandbox.
That is consistent with the startup’s mission to change into Malaysia’s first digital takaful operator with the deliberate launch of its new product Takaful digital inside Q1 2023.
“With the upcoming introduction of the primary pure know-how takaful resolution supplier, this profitable spherical of funding will allow us to supply reasonably priced protection on an ever bigger scale,” mentioned Shazy Noorazman, CEO of Ouch!.
“We’re proud to have acquired a vote of confidence from a number of large gamers and it’s a signal that our strategy is being acknowledged and effectively acquired by the market.”
In March 2021, Yikes! acquired RM1.5 million in seed funding from Vynn Capital and Temokin, together with some angel traders. He had additionally initially deliberate to carry a pre-Serie A spherical later that yr.
What’s takaful insurance coverage?
Takaful is the Islamic different to insurance coverage, whereby a gaggle of individuals comply with contribute a specific amount frequently to build up a reserve of cash.
This pool of cash is managed by a 3rd occasion and shall be used to financially help a member of the pool throughout an unlucky occasion.
Takaful is Shariah compliant, which suggests it’s socially accountable and spreads dangers amongst individuals, doesn’t have extreme rates of interest, and avoids uncertainty. The excess takaful can also be distributed to the individuals, slightly than belonging to the insurance coverage firm.
A consumer doesn’t must be a Muslim to enroll in a takaful plan and obtain its protection.
Aiming to change into Malaysia’s first digital takaful dealer
On the finish of 2022, BNM introduced that it had 5 licenses up for grabs for digital insurers and takaful operators (DITO) by 2023.
The central financial institution had issued a draft publicity on the licensing and regulatory framework for DITO, which marks a brand new kind of entry into digitization.
As such, it expects DITOs to reinforce the monetary resilience of customers whose safety wants are at present unmet or underserved, and to supply various merchandise with good buyer experiences.
Just like how digital banking licenses have been granted, there shall be a interval of remark for licensed DITOs referred to as the foundational part that would final wherever from three to 5 years.
“Acquiring the license will broaden our market, and due to this fact our potential, considerably. That is all consistent with our ambition to be the primary digital takaful dealer of its type, with a selected deal with the youthful era, taking our signature strategy to insurance coverage into a brand new house,” Shazy mentioned in a press launch.
“Now there are a number of generations that both do not see the significance of insurance coverage or cannot perceive the layers of insurance coverage choices and processes.”
That is precisely what Ouch! desires to deal with, with a easy and direct product that Shazy is assured will resonate with the youth of immediately and tomorrow.
To guide the model on this path, Ouch! it additionally introduced the appointment of a board member and adviser, Mukesh Dhawan.
He’s the previous CEO of Zurich Takaful Malaysia Bhd, with 25 years of expertise within the monetary and insurance coverage business. He’s additionally a present angel investor and shareholder in Ouch!.
- Extra details about Ouch! right here.
- Learn extra insurance coverage associated content material right here.
Featured Picture Credit score: Yikes!
Ouch!, M’sian one-stop insurance platform gets pre-Series A funds